Generative AI could boost Australia's economy by USD $269 billion

New research from Accenture indicates that the responsible and large-scale adoption of Generative AI in Australia could generate USD $269 billion in economic value by 2038. This would contribute an additional 0.75% to the country's annual GDP growth.

The study highlights the significant economic benefits if Australia successfully integrates its artificial intelligence (AI) skills across policies, programmes, and outreach efforts. The Albanese Government's recent allocation of AUD $21.6 million over five years in the Federal Budget aimed at enhancing AI policy development aligns closely with Accenture's findings.

One of the key insights from the report is that 45% of Australian working hours could be either automated or augmented by generative AI, compared to the APAC average of 33%. The research encompassed economic modelling and a C-Suite (CXO) survey conducted across major Asia-Pacific economies, including Australia, China, India, Japan, and Singapore.

According to the survey, 33% of working hours in APAC will be affected by generative AI, leading to increased productivity. In Australia, this figure rises to 45%, potentially resulting in an annual GDP growth increase of 0.75 percentage points and an added economic value of USD $269 billion by 2038.

The survey also revealed that 96% of APAC business leaders recognise the significant impact of generative AI. However, only 4% have rolled out generative AI training at scale, despite 91% of workers expressing a desire to acquire skills to work with this technology. Additionally, 89% of businesses in the region plan to increase their investment in generative AI this year, yet just 35% are prioritising workforce development.

Industries likely to be most transformed by generative AI include Capital Markets, where 71% of working hours are potentially automated or augmented. This is followed by Software and Platforms at 66%, Banking at 64%, Insurance at 62%, and Retail at 49%.

Leo Framil, CEO of Growth Markets at Accenture, stated that generative AI has expedited the data and AI-led reinvention journey for businesses. He stressed that leaders need to view generative AI as a value-creation opportunity rather than just a tool for process redesign and cost efficiency. "The Asia-Pacific region has an opportunity to showcase responsible AI adoption that prioritises productivity and sustainable growth," said Framil.

Emma Neil, Strategy and Consulting lead for Accenture in Australia and New Zealand added that to fully harness the potential of generative AI, businesses must adopt a people-centric approach. "The key to unlocking its real value lies in skilling. For businesses to maximise generative AI benefits and drive growth, leaders must extend their focus beyond immediate tasks and roles, pairing AI investments with workforce training and development," she stated.

Accenture recommends that businesses take several steps to leverage generative AI effectively. Leaders are advised to engage and lead differently, embedding learning into workflows. To fully exploit generative AI's potential, entire workflows need to be rethought and aligned with business goals. This involves reshaping the workforce and prioritising continuous talent reinvention.

The study's methodology involved breaking down jobs into tasks to assess their potential for automation and augmentation. Using economic literature, Accenture estimated the total hours saved by generative AI and explored likely job transitions, ultimately modelling GDP growth from 2023 to 2038 under various scenarios.